Numetal moves NCLT to reinforce its eligibility for Essar Steel

Firm fears that full facts submitted by it for determining its eligibility to submit a Resolution Plan haven't been properly assessed

Numetal Limited (a VTB Bank of Russia company) filed an Application before the NCLT, Ahmedabad seeking a declaration that Numetal is eligible to submit a resolution plan for Essar Steel. The NCLT has sent a notice to the lenders committee and has said CoC meeting today will be subject to its ruling.

Numetal's other key shareholders include TyazhPromExports (TPE) of Russia and Indo International. Aurora is a 25 per cent minority shareholder with no right to directorship and management of Numetal, it said. 

Numetal apprehends that full facts submitted by it for determining its eligibility to submit a Resolution Plan have not been appropriately assessed. Accordingly, in the Application, all necessary facts for determining the eligibility of Numetal have been placed before the NCLT for an objective assessment, as per a statement.  

In view of the urgency of the matter, the Application was mentioned before  NCLT on Tuesday. The  NCLT, on hearing the counsel appearing for Numetal, issued a notice to the Committee of Creditors (COC) through the Resolution Professional. The NCLT also observed that any decision taken or resolution passed by the COC in the meeting on 21th March would be subject to the outcome of the Application. The next date of hearing of the Application is 4th April 2018”.

Numetal’s application was necessitated as there is some apprehension that Numetal’s resolution plan may not be considered properly by the COC. Also this was in view of various news reports suggesting that the Resolution Professional of ESIL has been advised that Numetal is not eligible to submit a Resolution Plan, and that the COC would meet on Wednesday, to consider the recommendation of the Resolution Professional.